4.
| (1) Subject to the provisions of sub-section (2), where any business undertaking is acquired by or vested in the Government, all the rights and liabilities under any contract or agreement which relates to the purposes of that undertaking and which subsists on the date of transfer or on the primary vesting date of that undertaking shall vest in the Government. |
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| (2) The Minister of Finance may at any time repudiate the liabilities under any contract or agreement referred to in sub-section (1) if he is of opinion that such liabilities were incurred mala fide, dishonestly or fraudulently. Notice of the repudiation shall be given by the competent authority to the parties to the contract or agreement. |
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| (3) Where the Minister of Finance under subsection (2) repudiates the liabilities under any contract or agreement such liabilities shall be deemed never to have vested in the Government. |
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| (4) For the purposes of this section, " liabilities " shall not include any loan repayable to a director of any business undertaking which is acquired by or vested in the Government or to any member of the family of such director. |
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Sri Lanka Consolidated Acts